Lululemon’s earnings top estimates on strong sales, but retailer won’t offer outlook due to coronavirus pandemic

Business

A Lululemon sign hangs in front of their store at the Woodbury Commons Premium Outlets shopping mall on November 17, 2019 in Central Valley, New York.

Gary Hershorn | Corbis News | Getty Images

Lululemon announced Thursday fiscal fourth-quarter results that topped expectations, as its same-store sales surged 20% during the period, thanks, in part, to more men shopping in its stores and online. 

However, due to the uncertainty from the coronavirus pandemic, the yoga pants maker said it will not be providing a fiscal 2020 outlook at this time. Its stock fell about 2% in after-hours trading. 

Here’s how the company did during the fourth quarter compared with what analysts were expecting, based on Refinitiv data: 

  • Earnings per share: $2.28 vs. $2.24 expected
  • Revenue: $1.40 billion vs. $1.38 billion expected

Net income rose to $298 million, or $2.28 per share, from $218.5 million, or $1.65 a share, a year ago. That was better than the $2.24 per share analysts were expecting it to earn, based on Refinitiv data. 

Net revenue grew roughly 20% to $1.40 billion from $1.17 billion a year ago. Analysts were calling for $1.38 billion in revenue.

Same-store sales overall were up 20%, the company said. Digital sales surged 41% during the quarter. Men’s revenue was up 32%, and women’s was up 17%. 

“The strength of our brand and strong financial position will help us manage through the day-to-day, while continuing to effectively plan for and invest in our future,” CEO Calvin McDonald said in a statement. 

In February, because of the heightened spread of COVID-19, Lululemon closed all of its stores temporarily in mainland China. It said Thursday that all but one of these shops have since reopened. Earlier this month, Lululemon temporarily closed all of its stores in North America, Europe, Malaysia and New Zealand due to the virus. It also has temporarily closed a distribution center in Sumner, Washington. 

Lululemon shares closed Thursday up about 3.7%. The stock is down about 15% this year. The company has a market cap of about $26.2 billion. 

Read the full press release here. 

This is a developing story. Please check back for updates. 

Products You May Like

Articles You May Like

Starbucks second-quarter earnings to fall 46% as coronavirus hits sales
Processing delays heighten anxiety for small businesses tapping $350 billion rescue program
Rocket startup Astra trims staff to survive pandemic until next year
Why Ernest Wright Scissors Are So Expensive | So Expensive
Everything you need to know about your student loans amid the coronavirus pandemic

Leave a Reply

Your email address will not be published. Required fields are marked *